Mining major Vale do Rio Doce expects 10.4% growth

Commodity Online

BRASILIA: World s second largest mining and metals company Vale do Rio Doce is expected to grow 10.4 percent in 2008 much of it fuelled by demand from emerging economies.

Fabio Barbosaa, Finance Director of Vale do Rio Doce said at a seminar here that his company is projected to grow 9.5 percent in 2009 and 8.8 percent in 2010

He said that despite the short term slow down, he expected the global economy to grow four percent annually in the next five years.

The global economy has been propelled by the emerging markets, which represent some 43 percent of the world's gross domestic product (GDP) and 84 percent of the world's population, he said.

These emerging economies also account for 90 percent of the growth of the world's metal industry, he said.

Prices of Brazilian minerals will remain the same despite the deceleration of the U.S. economy, he said.

The company recently ratified several plans to raise investment until 2012 to 59 billion U.S. dollars and increase its minerals production by 50 percent, or 422 million tons.

With a market capitalization of some 150 billion dollars, the company is the world's largest producer of iron ore and pellets and one of the largest global producers of nickel, manganese and ferro alloys.